12 Steps to build a B2B company from 0 to Seed
I work with dozens of B2B idea- and pre-seed stage teams all the time. I keep iterating on what to focus on for getting from idea to seed. There’s definitely no one formula, but I have a pretty good idea for a good 12 step process. I will keep figuring it out and making it more detailed in the future.
These steps are good to follow no matter which way you intend to sell your product in the end, even if it will be fully inbound-driven, because first, you need to get to that elusive product-market-fit.
The overarching philosophy here is to want to solve a problem for someone. Forget about selling something, forget about pricing, forget about frameworks. Just go out there and be relentless about solving a problem with a product. If you get there, the other things will solve themselves. When talking to customers, remember, you are there to solve their problems and help them, it’s not about you or your ideas, stay humble.
1. The Team
Ideally, you have the team first. Work on getting a perfect team, be ambitious with this. At least: someone who can sell and is good at talking to customers; and someone who can do mockups and build the product. 2-4 people is ideal.
2. Initial idea or problem space
First you need an idea or a general direction; a “problem space”. If you have a concrete idea, you need to step back and first validate the problem and keep an open mind.
3. Validate the problem and how the problem is solved now
While building the team, you can start “talking to customers” - which is really listening more than talking. Talk about the problem and learn what problems your customers have and how they are solving them today, and how they have tried to solve them. Big mistake at this point: going into “sales” mode - people will lie to you that they love your product (Read the book: Mom Test)
4. Iterate until you have a replicable problem
Iterate so far that you start hearing an actual problem that you think can be solved for a specific type of customer.
5. Validate again with Mockups
Create mockups and show it to the same people who had the pain. Also show it to new similar types of customers
6. Get the discussion conversions up high
Get to a point where you can define a type of customer (ICP), for which over 50% of the want the product right away. Yes it will take time to talk to a lot of customers, but this is crucial so you don’t start building the wrong thing.
Ideally these customers are quite “developed” in this field, so they would be looking for the best/newest solutions.
7. Build a first version that solves the narrow problem
Build the minimal version of the mockup that solves a problem so that you can get the product in the customers hands.
8. Get close to your users, really close, and learn
Get the product in the hands of those users and sit with them when they use it to learn. Ideally you can fix it at the same time they are using it or for the next day - they should be thrilled that you are solving a painful problem they have in real time.
9. Get 3-5 first customers
Get the first 3-5 customers in this way, get them to pay something for it and get them to love it. Depending a bit on the product, they should be willing to pay from the start, otherwise your alarm bells should be ringing.
You are probably very close to product market fit now
10. Expand slowly to 10 customers
Start expanding to more users - iterate. Use your network, or just find the customers somewhere; events, emailing, Linkedin. Don’t yet start huge marketing or setting up sales.
11. Get to excitement for the 11+ customers
When new users that you show the product to start ripping the product from your hands you have product-market-fit.
Now you are ready to start getting out there.
12. Focus on conversion
Now, focus on conversion, figure out how to get to a very high conversion when talking to new customers. Something like 40-60% conversion rate for your ICP. Don’t focus on growth yet.
Now you’ve figured out how sell at a small scale, and you have product-market fit.